With increasing frequency, global markets are shining a spotlight on valuation practices and the valuation profession. The importance of fair value and similar measurements in financial reporting mandates corresponding high-quality valuations.
Though a number of organizations have been proactive in issuing technical valuation guidance, no single organization has issued comprehensive guidance that can significantly improve current practice broadly. Likewise, we do not believe that any one organization has displayed all of the characteristics necessary to be the leading global standard setter.
But the need for a leading global valuation standard setter clearly exists. The valuation profession needs a primary technical voice to issue high-quality standards for financial reporting that can enhance quality, promote consistency in practice, and advance the brand of the profession as a whole. To be successful, such a standard setter should have a clear mission, transparent governance, and due process.
Please also read our companion piece Point of View: The valuation profession - At a crossroads.